Money Smart

Spend Smarter This Christmas: Avoid the Holiday Budget Hangover

The festive season is a time for celebration, but it can also bring financial stress if you’re not careful with your spending. According to new research from Moneysmart, while 74% of people set a Christmas budget, only 29% stick to it. Many are turning to savings, credit cards, and Buy Now Pay Later (BNPL) services to cover their holiday expenses, which can lead to a post-Christmas financial hangover. If this sounds all too familiar, don’t worry—we’ve got you covered. With these simple tips and strategies, you can enjoy the holidays without the financial regret.

Set a realistic budget 

Before you start shopping, decide how much you can afford to spend. Break it down into categories like gifts, food, decorations, travel and entertainment. Track your spending to stay on target.

Be aware of using credit

Pay with cash or debit card and avoid using things such as credit cards and or buy now pay later that you can’t afford. If you do use credit products, stick to what you can afford to repay in full. Consider balance transfers to save on interest but be mindful of fees and repayment deadlines.

Monitor your accounts regularly

Keep an eye on your credit card and bank statements during the holiday season. Report any suspicious transactions to your bank immediately.

Be aware of bad deals or scams

Watch for red flags like “too good to be true” prices, limited-time offers pressuring you to act quickly, or poorly rated or unknown online retailers. Stick to reputable stores, and research sellers before buying.

Get help if you need it

If you’ve gone over budget, take proactive steps to regain control. Create a repayment plan for any debt incurred, prioritising paying off high-interest balances first.

Moneysmart tips: A monthly e-newsletter offering free tools, tips and guidance

Avoid scams as you shop the sales

Online sales offer great deals and convenience, but they also come with the risk of scams. This article provides tips on how to identify potential scams and shop safely during online sales.

Tips to avoid online scams

Interest-free doesn't mean cost-free 

Interest-free deals allow you to pay for items over time, but failing to repay within the interest-free period can result in high charges.

Pay off and interest-free deal on time

Getting a pet this Christmas?

Before getting a pet, ensure they fit your budget and lifestyle, considering both the initial purchase and ongoing costs like food, grooming, vet care, and supplies.

How much it costs to own a dog or a cat

Tips for managing buy now pay later

Buy now, pay later services can be helpful for managing cash flow, but if not used cautiously, they can lead to financial trouble.

Know the cost before you sign up

Develop an investment plan + Check before you invest + Have you got investing FOMO

Planning is the key to successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.

Develop an investing plan

Check the facts before you invest

Before you part with your money, check: Are they licensed? Can I explain how it works? Are there signs it could be a scam? What can I do if something goes wrong? Learn how.

Check before you invest

Have you got investing FOMO? 

If you're hearing a lot of buzz around a type of investment and don't want to miss out, STOP! It might be a hype-driven investment. 

How to avoid investment hype

Moneysmart tips: Simple steps to manage your super

Your super isn't always top of mind when you're focused on juggling work, family life, and the many other responsibilities of adulting. But taking an active interest in your super now, can set you up for the lifestyle you want in the future. 

New research from Moneysmart has revealed the concerning trend that nearly half (48%) of surveyed millennials admit they are not knowledgeable about maximising their super. That's why Moneysmart's new campaign aims to drive awareness about why focusing on superannuation earlier is good for your long-term financial health.

When it comes to your super, extra contributions are just one option for growing your future wealth. Check out these other ways to secure a better financial future. 

Simple steps to manage your super

Check you're being paid the right amount of super

The super guarantee (SG) is now 11.5% of your income. To see how much your employer is paying you, look at your payslip or call your super fund.

How to calculate your super payments

Make sure your super fund can contact you

Your fund will use your email address and mobile number to send you important updates, including your annual statement. Reading your annual statement is a good way to stay connected with your super.

What to check in your annual statement

Check your insurance cover

Most super funds provide life cover and TPD insurance for their members. Make sure you're only paying for the insurance you need.

Tips for choosing insurance through super

Consider combining your super

Moving your super into one account makes your super easier to manage and saves on fees. You can transfer your super for free in a few easy steps.

How to check if you have multiple accounts

How to check if you're eligible for low-fee banking

Choosing the right bank account and regularly checking the fees you're paying can help you look after and grow your money. 

ASIC’s recent report found that more than 150,000 people on low incomes were in high-fee bank accounts, despite being eligible for a basic low-fee account. 

Low-fee accounts are available if you qualify for a concession card issued by the Government. If this applies to you, ask your bank about their low-fee account options.


Read full article

Get More From Your Super

ASIC recently reviewed the superannuation sector and found super funds and financial advisers could do more to monitor investments in super and communicate with members and clients about how their super is performing.

Key points:

  • How your super is invested

  • Investments in super impact your future lifestyle

  • Make the most of your super

Read the full article here.

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2023 tax returns + Suspicious website alert + How CFDs work

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Lodge online with myTax

You can lodge your return using myTax, the ATO's free online tax return. You need a myGov account linked to the ATO to lodge online. Returns lodged this way are usually processed within two weeks.

Lodging with myTax is easy and free. Most information from employers, banks, government agencies and health funds will be automatically included in your tax return by late July. You just check the information is correct, enter any income that isn't included, add any deductions you have, and then submit. MyTax will then calculate your tax for you.

The ATO has 'how-to' videos to help you lodge online using myTax.

Click here to read the full article.

Alert: Suspicious website – Do not deal with www.cambridgeassetmanagement.com

The operators of www.cambridgeassetmanagement.com are promoting various investment plans in leveraged financial products on the website. The operators do not have an Australian financial services (AFS) licence and are not authorised to operate a financial services business in Australia.

Key points

  • ASIC is alerting investors about suspicious ‘investment opportunities’ offered on www.cambridgeassetmanagement.com. The website is allegedly run by a Hong Kong entity, Cambridge Asset Management, that is operating out of Hong Kong.

  • The operators of the website are not licensed to provide financial services in Australia. That means Australian consumers are not protected.

  • ASIC is not associated with the operators of www.cambridgeassetmanagement.com and will never ask you to pay tax to withdraw your investment funds

Click here to read the full article.

Contracts for difference (CFDs)

CFDs let you speculate on short-term market movements. Like foreign exchange rates, share prices, stock market index levels, cryptocurrency rates or other underlying assets. Most people lose money trading CFDs.

Click here to read the full article.

How investments are taxed + Super contributions + Ponzi schemes

How investments are taxed

  • Lower tax on your investments can help you reach your financial goals sooner. But don't choose an investment based on tax benefits alone.

  • How investment income is taxed

  • Positive versus negative gearing

  • Tax-effective investments

  • Investing and your tax return

Ponzi schemes

Ponzi schemes are investment scams that pay existing investors with funds collected from new investors. There is no real investment.

  • Warning signs of a Ponzi scheme

  • How Ponzi schemes work

  • What to do if you have invested in a Ponzi scheme

Read full article here.

Turn up your scams radar + Manage living costs + Make a balance transfer work for you

Protect yourself from scams

Use this four-step guide to turn up your SCAM radar so you can spot a scammer and protect yourself. By keeping up to date with the latest scam trends, you can stay one step ahead of scammers

Step 1: STOP
Step 2: CHECK
Step 3: ACT
Step 4: MONEYSMART

Read full article here.

Manage the cost of living

Having a plan will help you feel more prepared when your living expenses increase. There's also support and services available if you're feeling overwhelmed.
Practical steps to help you manage living costs and keep on top of bills.

  • Make a plan

  • Get help if you need it

Read full article here.

Compare mortgage rates + Solar investment scam + Greenwashing

How much will your mortgage repayments be?

  • Use our calculator to compare different rates

Click here to read full article.

Scam alert: United Solar Investments

  • United Solar Investment promotes a suspicious scheme which claims to allow Australian consumers to purchase an interest in solar panel systems. The scheme is being promoted as a ‘financing of photovoltaic solar power generation’ offering unrealistic returns of up to 20% and unlimited referral commissions.

Click here to read full article.

Investing without the greenwashing 

Find out what ESG investing is and how it works. So you can choose investments that match your goals and values.

What ESG means

  • ESG investing is when a fund considers sustainability (including environmental, social and governance factors) to inform their investment strategy.

  • There is a growing demand for ESG investing, also known as sustainable (or sustainability-related), responsible or ethical investing.

Click here to read full article.

Scam alert: Fake bill and loan discounts

  • ASIC is alerting investors about an impersonation scam using email and cold calling tactics

  • Scammers are making fake offers of 30% discounts on bills and loan repayments

  • Unless you are dealing directly with the service provider, discount billing and upfront payment offers are often scams.

Scammers are using free email services to falsely impersonate a registered company to make fake discount offers on bills and loan repayments. Discount offers from third parties are often fake, especially when they make the offers by cold calling you.

Click here to read more.

Identity theft - Protect your personal information

If your personal information falls into the wrong hands, it can be used to steal your identity.

If you've been affected by the recent Optus data breach, the Office of the Australian Information Commissioner has information on how to respond to a data breach.

The ACCC's Scamwatch has released information on the latest scams arising from the breach. 

It's important to:

  • report the breach to your bank and super fund

  • change your passwords

  • be on the lookout for suspicious emails, phone calls, texts or messages through social media

  • keep close watch on your bank account for any unauthorised transactions

  • request a temporary ban on your credit report to ensure no unauthorised loans or applications

Natural disasters and your home insurance

It's devastating when a natural disaster destroys or damages your home. Finding out you don't have enough insurance can add to your distress.

Understanding what events and damage are covered by insurance can help you get the right cover for your home.

Knowing if you live in a disaster-prone area can give you a better understanding of your risk. This helps you choose coverage for the events that are most likely to happen to your home.

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